Kenya's Amu Power signs new power agreement with GE

Gulf Energy, developer of the region's largest private sector-led infrastructure project 1050MW Lamu Coal Power Plant (Amu Power), has signed a clean coal technology agreement with General Electric (GE)

Under the agreement, GE, through its affiliates, will acquire a stake in the equity of Amu Power. In addition, GE will design, manufacture and deliver its Ultra Super-Critical clean coal technology components (boiler and steam turbine generator) and air quality controls systems for the Lamu Coal Power Plant.

Amu Power is the special purpose company that is set to own and operate the 1,050MW coal-fired power plant in Lamu County, Kenya, under the public private partnership framework.

GE’s Ultra-Supercritical technology is seen to provide a clean environment through elimination of emissions and lower the overall cost of power generation in the country.

The parties further noted that upon completion, the Lamu coal-fired power plant will be the single largest Independent Power Producer (IPP) in the region and will account for up to 30 per cent of power generation capacity in Kenya.

Francis Njogu, managing director of Amu Power, said, “Kenya has been looking for ways to enhance its generation mix to provide the most efficient, least-cost and reliable power in a sustainable manner, and the technology offered by GE gives us a unique opportunity to achieve this ambition.”

Commenting on the new power agreement, George Njenga, commercial leader at GE Steam Power for Sub-Saharan Africa, said, “Kenya’s energy demands are growing as the government seeks to implement its critical ‘Big Four’ agenda. GE Ultra Super-Critical Coal Power technology will deliver cleaner, affordable, reliable and efficient solutions as well as the critical power to help meet the country’s growing needs.”

GE’s Ultra Super-Critical technology aims to raise the efficiency bar of coal power plants and has reached 47.5 per cent efficiency in the world’s most efficient coal power plant in Germany.

The Lamu coal-fired power plant project is part of Kenya’s vital and crucial initiative in the energy sector to address present electricity affordability and reliability challenges. Additionally, it will have the flexibility to profile the generation according to the daily demand pattern, compared to other power production technologies that are inflexible, reducing generation costs by 12 per cent to 36 per cent.